Date Requested:February 02, 2012
Time Requested:04:09 PM
Agency: Legislative Auditor
CBD Number: Version: Bill Number: Resolution Number:
2012R1968 Introduced SB485
CBD Subject: CREATING A FISCAL AND POLICY DIVISION
FUND(S)
Joint Committee on Government and Finance
Sources of Revenue
General Fund
Legislation creates:
A New Program

Fiscal Note Summary

Effect this measure will have on costs and revenues of state government.

    The bill creates a Fiscal and Policy Division within the Legislative Auditor's Office answerable to the Legislative
    Auditor, the Joint Committee on Government and Finance, and the Legislature.
    The Division may be required to:
    1. Analyze the annual budget prepared by the Executive Branch.
    2. Make continuous and long range studies of projected revenues and expenditures annually publish an official
    economic outlook for the state.
    3. Provide fiscal notes and analyze legislative proposals for fiscal effect.
    4. Prepare a fiscal note on all bills which, if requested by any legislator, is expected to have a reasonable impact on
    the revenues or expenditures of the state budget.
    5. Develop and maintain a comprehensive information system on the receipt of revenues by local governmental
    subdivisions and political subdivisions from local, state and federal sources, as well as the expenditure of these
    revenues and to submit a summary of this information annually to the Legislature.
    6. Make available to the general public revenue, expenditure and public policy information in a manner which
    allows the taxpayer to have confidence in the operations of state government.
    The creation of the Division will increase the expenses of the Joint Committee on Government and Finance by
    $720,680 annually, and estimated start-up costs of $60,000.

Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
2012
Increase/Decrease
(use"-")
2013
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 780,680 720,680
Personal Services 0 678,300 678,300
Current Expenses 0 83,000 23,000
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 19,380 19,380
2. Estimated Total Revenues 0 0 0
3. Explanation of above estimates (including long-range effect):
    Position Salary Benefits Total
    Director $75,000 $24,750 $99,750
    Admin. Asst. $25,000 $8,250 $33,250
    Actuary $130,000 $42,900 $172,900
    Fiscal/
    Policy Analyst $40,000 $13,200 $53,200 * 7 = $372,400
    
    Total Personal Services and Benefits - $678,300
    
    
    Start-up costs may include renovating new office space, purchasing new office furniture, and recruiting new
    employees. The estimate for office furniture is based on the Office of Legislative Information's purchase of new office
    furniture for 10 employees. For recruiting costs, it is anticipated that a search for an actuary may take up the bulk of
    these expenses.
    
    Estimated start-up costs
    Office Renovations $10,000
    New furniture $30,000
    Recruiting $10,000
    New computers $10,000
    Total $60,000
    
    Annual current expenses include supplies, postage, etc, OPEB payments, and travel for annual training for all
    employees with the exception of the administrative assistant. Office expenses are based on Joint Committee expenses
    for similar office sizes.
    
    Estimated annual current expenses
    Office expenses $5,000
    Travel/training $18,000
    Total $23,000
    
    Annual OPEB payments are calculated at 3.8% of personal services. This is included in the "other" column in the
    Fiscal Note Detail.
    OPEB paygo $19,380
    
    Total first year expenses including start-up costs are $780,680.
    Annual estimated expenses are $720,680.
    
    


Memorandum
Person submitting Fiscal Note:
Denny Rhodes
Email Address:
perd@mail.wvnet.edu
    The fiscal note does not calculate any expenses that would arise from an agency having to be relocated from the
    Capitol in order to create office space for the Fiscal and Policy Division. Thus, loss of rental income to the
    Department of Administration nor any added expenses for relocating a state agency are included.